CHINAHONGQIAO (01378) rose over 5% intraday, reaching a record high of HK$34.26. At the time of writing, the stock was up 2.90% at HK$33.34, with a turnover of HK$836 million.

Bank of America released a research report stating that amid surging power demand driven by rapid global AI development, China's aluminum sector offers strong investment value due to significant power cost advantages, multiple demand-side growth drivers, and tightening supply conditions. The bank raised its 2026-2030 profit forecast for CHINAHONGQIAO (01378) by 5-14%, lifting the target price from HK$35 to HK$38 while maintaining a "Buy" rating. Key supporting factors include a 6%-7% dividend yield, the expected commencement of the Simandou project by late 2025, share buyback support, and a valuation advantage of 9x P/E for 2026.

Bank of America highlighted that Chinese aluminum producers' core competitiveness stems from their significant power cost advantage. Electricity prices in China are 20% lower than in India and 30%-60% lower than in Europe and the U.S. Given that aluminum production consumes 13,500 kWh per ton, Chinese producers enjoy a cost advantage of RMB 1,200-3,600 (approximately $170-500) per ton compared to peers in other regions.